Increased trade between UK and EU is encouraging, says Logistics UK

The figures show that exports to the EU partially rebounded in February 2021, close to the average seen last summer. This follows a steep plunge of 42% in January, as businesses entered lockdown, adapted to new trade and customs procedures and succumbed to international pressures. In monetary terms the rebound equates to £3.7 billion, following a decrease of £5.7 billion.

PHARMACEUTICALS AND CARS DRIVE EXPORTS

The export of machinery and transport equipment and chemicals, particularly cars and pharmaceutical products has driven the rise in exports, demonstrating the resilience of the UK automotive and health sectors.

IMPORT PICTURE MORE COMPLEX

Imports also recovered, albeit by a smaller margin, having increased by 7.3% following a 29.7% fall in January. This puts imports at a similar level to where they were during the first lockdown in spring 2020.

Compared to the situation with exports, the picture with imports is more complicated. Stockpiling ahead of the end of the EU transition period means that many UK firms have not returned to normal import procedures. International pressures owing to the pandemic and supply chain issues with microchips, also means it is too soon to draw conclusions about the impact of Brexit on EU imports.

ECONOMIC GROWTH ENCOURAGING

The UK’s Gross Domestic Product (the total value of goods and services produced by the UK in a year) grew by 0.45% in February, but this must be set against the fact that the UK economy is still almost 8% smaller than a year earlier. However, the ONS data also showed that the economy did not shrink by as much as first estimated in January. GDP dropped by 2.2% in January, not 2.9% as previously estimated.

The number of ships calling at UK ports also increased, the seven-day average of daily shipping visits increasing from 290 visits on 31 January 2021 to 344 on 28 February 2021.

“Logistics UK is encouraged to see that the ONS figures show an improvement to the volume of goods moved between the UK and EU,” said Alex Veitch, Logistics UK’s General Manager of Public Policy, “We expect this trend will continue as many of the factors which may have caused friction to trade in recent months, including COVID-19 restrictions, stockpiling, and challenges with the implementation of new post-Brexit trade processes, continue to dissipate.

“Logistics UK is urging government and industry to ensure the entire supply chain is ready for the introduction of further EU-UK border controls from 1 January 2022 to keep trade moving as smoothly as possible in the coming months and years.”

*www.logistics.org.uk/campaigns/logistics-and-the-economy

Published On: 15/04/2021 17:00:05

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